Report: BP in talks on criminal plea deal

Reuters is reporting that BP and the Justice Department are nearing a plea deal in which the oil giant would pay a record fine and plead guilty to criminal misconduct in connection with the massive 2010 Gulf of Mexico spill that threw a wrench into U.S. policies on offshore drilling.

BP confirmed early Thursday that it is in "advanced discussions" with DOJ and the Securities and Exchange Commission "regarding proposed resolutions of all U.S. federal government criminal and SEC claims against BP in connection with the Deepwater Horizon incident."

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"No final agreements have yet been reached and any resolutions, if agreed, would be subject to federal court approvals in the United States," the company statement said. It said such a deal would not include federal civil claims, such as penalties to be paid under the Clean Water Act.

Reuters said the deal could be announced as soon as Thursday.

Reuters said three sources told the news service that BP would plead guilty in exchange for a waiver of future prosecution.

The sources did not say how much of a penalty BP would pay but that it would be the largest criminal penalty in U.S. history, Reuters reported. It said the current record is a $1.3 billion fine that Pfizer paid in 2009.

Reuters also quoted from an August filing in which DOJ alleged that "reckless management" of the Macondo well "constituted gross negligence and willful misconduct." It cited errors made by BP and Transocean in deciphering a pressure test of the well, according to Reuters.

This article first appeared on POLITICO Pro at 8:15 a.m. on November 15, 2012.